The late night hike in the price of milk announced by the Karnataka Milk Federation on Friday appears to have had an almost instant impact on the prices of tea and coffee.

At Milky Way Bakery near Shivajinagar, the price of tea was increased from Rs. 5 to Rs. 6 and coffee from Rs. 6 to Rs. 7. At Indira Darshini, off Infantry Road, tea and coffee, which were priced at Rs. 9, are now Rs. 10.

“We are changing our rate card from Monday, increasing rates for all the items on the menu,” said cashier Narasappaya Karanth, citing an overall increase in the price of ingredients, particularly onions.

“I have to pay Rs. 60 extra for the tea powder, Rs. 250 for the gas, and I have no other go,” said R. Murugan of Milky Way, justifying the hike.

Kamal Nath, who runs a roadside teashop, however, is in a quandary. Catering to a highly price-sensitive clientele, he is worried that if he hikes the price of tea, customers will abandon him.

“We have been paying extra to the milk supplier: but I don’t know if I should increase the prices,” Mr. Kamal Nath said.